07.06.202108:02 Forex Analysis & Reviews: The calm before the storm. El Salvador wants to make Bitcoin a legal tender

Over the past weekend, bitcoin quotes were almost in absolute flat for the first time in a long time. This is very different for the first cryptocurrency. This gives the impression that a new powerful movement is being prepared, but in which direction? From our point of view, the fundamental background remains the same. It is still negative. Perhaps this is why neither retail traders nor large investors are in a hurry to buy bitcoin at a "very attractive rate", even though various crypto experts are trying to convince us. From our point of view, bitcoin will either continue to consolidate in the area of $32,000 - $42,000, within which a tangible rise in quotes is also possible, or it will resume its decline amid the loss of faith in a new rise in quotes. Thus, we do not expect the bullish trend to recover anyway. Recently, there was another news from Elon Musk, which is not at all surprising, since the Tesla CEO continues to comment on the "digital gold". Musk's game is completely incomprehensible, but it definitely has some kind of logic. After all, Musk cannot help but understand that his comments lead to strong changes in the rate of the first cryptocurrency. What good is it to him that bitcoin falls in price? Will he lower it as low as possible, so that he can then buy it in full? Or is everything much simpler and Tesla has already sold all its coins, so Musk doesn't care what bitcoin will be at now? Or has he already switched his attention to other cryptocurrencies like Dogecoin? Be that as it may, but Musk continues with all his might to lower the rate of the main cryptocurrency, and since he is not the only market participant, many other traders are already openly indignant at the behavior of the odious billionaire, whose actions lead to losses for much poorer people. We have already said that a group of hackers called Anonymous has declared war on Musk, which may also affect Tesla shares. In any case, all these events are unlikely to help bitcoin recover. Even the news that El Salvador can completely legalize bitcoin and make it the official currency of the country on a par with the US dollar, does not save bitcoin now. "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," said President Nayib Bukele. El Salvador's economy is reportedly 70 percent dependent on payments that Salvadorans send home from abroad. Thus, Bitcoin will be designed to simplify such transfers as much as possible and open up the world of financial services to Salvadorans, most of whom do not even have a bank account. More than 2 billion Salvadorans live abroad, but often send money home.

Technically, bitcoin's fuse continues to fade, and the cryptocurrency itself is trading very sluggishly. At this time, investors are in no hurry to buy bitcoins again, and miners get rid of the mined coins. The fundamental background remains unfavorable, so we believe that digital gold has more chances to return to the $30,500 level than to grow. If bitcoin quotes manage to gain a foothold above the 38.2% Fibonacci level - $41,000, this will slightly increase the likelihood of further growth in digital gold, but traders still need to get to this level.